HUL’s June quarter net grows 4% to Rs 1,057 cr

Net sales climb to `7,571 cr, consumer business grows 13%

Higher exceptional income from the sale of properties and tax credits in the base quarter helped Hindustan Unilever post 4 per cent increase in June quarter profit at Rs 1,057 crore.

The operating environment remained challenging for the fast moving consumer goods giant, with market growth slowing down further. Overall competitive activity remained high during the quarter despite lower media intensity.

“We continue to grow ahead of our market and have delivered another qua­rter of strong topline and bottomline performance,” said Harish Manwani, chairman.

“While we are seeing headwinds on market gro­wt­h, consumer spending and inflation, we remain focused on managing the business for long-term competitive and profitable growth and implementing our strategy with even greater rigour.”

HUL’s domestic consumer business grew at 13 per cent during the quarter, which was ahead of market, with 6 per cent underlying volume growth. The expansion was better than expected, with all segments registering double-digit growth.

The company sustained its investments at competitive levels across segments, with advertising spends rising by Rs 55 crore.

“After dropping to a low of 4 per cent growth in March quarter, volume expansion inched higher to 5 per cent. At 13 per cent, revenue growth was highest in five quarters, driven mainly by price increases. The operating profit grew by 21 per cent, which was best in last six months. The company’s personal care segment has once again started to perform well,” said Ashish Upganlawar, an analyst with Elara Capital.

Upganlawar said the company might witness slower volume growth in the months ahead, as rural demand might decline due to weak monsoon.

Net sales climbed 13 per cent to Rs 7,570.78 crore in Q1, from Rs 6,687.49 crore in the year-ago period.